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      Revenue From Software and Related Services Up 168% Over Prior Year

CHICAGO, Feb. 13 /PRNewswire-FirstCall/ — Allscripts (Nasdaq: MDRX), the
leading provider of clinical software, connectivity and information solutions
that physicians use to improve healthcare, today announced results for the
three months and year ended December 31, 2006.

(Logo: http://www.newscom.com/cgi-bin/prnh/20061005/ALLSCRIPTSLOGO-b )

Total revenue for the three months ended December 31, 2006 was
$63.6 million, compared to $34.2 million for the same period last year. Total
revenue for the three months ended December 31, 2006 includes the results of
A4 Health Systems, Inc., which Allscripts acquired on March 2, 2006. Revenue
from software and related services for the three months ended December 31,
2006 was $48.9 million, compared to $18.2 million for the same period last
year, increasing by 168%.

Gross margin percentage was 53.5% for the fourth quarter of 2006, compared
to 45.5% during the fourth quarter of 2005.

Net income for the three months ended December 31, 2006 was $4.5 million,
or $0.08 per diluted share, compared to net income of $3.4 million, or
$0.08 per diluted share, for the same period last year. Reported net income
for 2006 reflects stock-based compensation pursuant to Allscripts adoption of
new accounting rules effective as of January 1, 2006 and reflects tax
provisioning and acquisition related amortization not included in prior
periods. In order to facilitate further comparison of results against periods
prior to January 1, 2006, Allscripts began reporting non-GAAP adjusted
earnings in 2006. Adjusted earnings are comprised of net income giving effect
to the add-back of income taxes, depreciation and amortization, stock-based
compensation and one-time A4 Health Systems integration costs. Such adjusted
earnings for the three months ended December 31, 2006 were $12.5 million, or
$0.21 per diluted share, compared to adjusted earnings of $5.7 million, or
$0.13 per diluted share, for the same period last year. Please see “Non-GAAP
Financial Measures” below for a discussion of non-GAAP adjusted earnings and
adjusted earnings per share.

As of December 31, 2006, the Company had cash and marketable securities of
$83.0 million.

“By virtually every measure, 2006 was a record year for Allscripts. We
extended our leadership across all segments of the market and proved that,
together with our clients, we can transform our healthcare system into an
interoperable, connected electronic network that lets physicians spend their
time with patients, not paperwork,” said Glen Tullman, Chief Executive Officer
of Allscripts. “As we move into 2007, healthcare’s challenges remain front-
page news and every trend supports the adoption of software and technology as
the solution. We’re just getting started in terms of market penetration, and
there’s lots of runway ahead.”

Total revenue for the year ended December 31, 2006 was $228.0 million,
compared to $120.6 million for 2005. Revenue from software and related
services for the year ended December 31, 2006 was $173.5 million, compared to
$65.2 million for 2005, increasing by 166%. Total revenue for the year ended
December 31, 2006 includes the results of A4 Health Systems from the
acquisition date of March 2, 2006 through the end of the fourth quarter of
2006.

Total gross margin percentage was 50.9% for the year ended December 31,
2006, compared to 45.5% for the year ended December 31, 2005.

Net income for the year ended December 31, 2006 was $11.9 million, or
$0.22 per diluted share, compared to net income of $9.7 million, or $0.23 per
diluted share, for 2005. Non-GAAP adjusted earnings for the year ended
December 31, 2006 was $39.2 million, or $0.74 per diluted share, compared to
adjusted earnings of $16.8 million, or $0.39 per diluted share, for the same
period last year.

Non-GAAP Financial Measures

Allscripts reports its financial results in accordance with generally
accepted accounting principles (“GAAP”). Allscripts management also evaluates
and makes operating decisions using various other measures. These measures are
generally based on revenues generated by Allscripts products and services and
certain costs of producing that revenue, such as costs of selling, general and
administrative expenses. One such measure is non-GAAP adjusted earnings, which
is a non-GAAP financial measure under Section 101 of Regulation G under the
Securities Exchange Act of 1934, as amended. Non-GAAP adjusted earnings
consists of GAAP income (loss) before taxes, excluding as applicable,
depreciation and amortization, stock-based compensation expense under SFAS No.
123R, realized losses on marketable securities and integration costs
associated with the March 2, 2006 acquisition of A4 Health Systems.

Management believes that it is useful in measuring Allscripts operations
to exclude, as applicable, depreciation and amortization, realized losses on
marketable securities and A4 Health Systems integration costs because these
costs are essentially fixed and cannot be influenced by management in the
short or medium term. In addition, management believes that excluding share-
based compensation expense under SFAS No. 123R is appropriate because this is
not a cash expense, but instead is a significant accounting charge that the
Company was not required to record for its share-based compensation awards
prior to 2006. Accordingly, management believes that excluding these items
from non-GAAP adjusted earnings will provide information that is more
generally comparable to prior periods and that reflects the Company’s core
operating results.

Management believes that non-GAAP adjusted earnings provides useful
supplemental information to management and investors regarding the performance
of the Company’s business operations and facilitates comparisons to our
historical operating results. Management also uses this information
internally for forecasting and budgeting as it believes that the measure is
indicative of the Company’s core operating results. Note however, that non-
GAAP adjusted earnings is a performance measure only, and it does not provide
any measure of the Company’s cash flow or liquidity. Non-GAAP financial
measures should not be considered as a substitute for measures of financial
performance in accordance with GAAP, and investors and potential investors are
encouraged to review the reconciliation of non-GAAP financial measures
contained within the attached condensed consolidated financial statements.

Allscripts will conduct a conference call on Tuesday, February 13, 2007 at
4:30 PM Eastern Time. The conference call can be accessed by dialing
1-888-644-5594 and requesting the Allscripts earnings call, or at
https://www.allscripts.com . A recording of the conference call will be
available three hours after the conclusion of the call for a period of two
weeks at https://www.allscripts.com or by calling 1-800-642-1687, ID #7427360.

About Allscripts

Allscripts is the leading provider of clinical software, connectivity and
information solutions that physicians use to improve healthcare. The Company’s
business groups provide unique solutions that inform, connect and transform
healthcare. The Clinical Solutions Group’s award-winning software applications
include electronic health record, practice management, electronic prescribing,
document imaging, emergency department and care management solutions.
Additionally, Allscripts provides clinical product education and connectivity
solutions for physicians and patients through its Physicians Interactive(TM)
Group and medication fulfillment services through its Medication Services
Group. To learn more, visit Allscripts on the Web at
https://www.allscripts.com .

This announcement may contain forward-looking statements about Allscripts
Healthcare Solutions that involve risks and uncertainties. These statements
are developed by combining currently available information with Allscripts
beliefs and assumptions. Forward-looking statements do not guarantee future
performance. Because Allscripts cannot predict all of the risks and
uncertainties that may affect it, or control the ones it does predict,
Allscripts’ actual results may be materially different from the results
expressed in its forward-looking statements. For a more complete discussion of
the risks, uncertainties and assumptions that may affect Allscripts, see the
Company’s 2005 Annual Report on Form 10-K, available through the Web site
maintained by the Securities and Exchange Commission at http://www.sec.gov .



                      Allscripts Healthcare Solutions, Inc.
                 Condensed Consolidated Statements of Operations
                (amounts in thousands, except per-share amounts)
                                   (Unaudited)

                                        Three Months Ended      Year Ended
                                            December 31,       December 31,
                                           2006     2005      2006     2005

    Revenue:
          Software and related services  $48,910  $18,249  $173,503  $65,166
          Prepackaged medications         11,232   12,789    43,688   45,609
          Information services             3,418    3,159    10,778    9,789
              Total revenue               63,560   34,197   227,969  120,564

    Cost of revenue:
          Software and related services   18,704    6,908    70,351   23,507
          Prepackaged medications          9,419   10,873    36,263   38,046
          Information services             1,421      849     5,417    4,136
              Total cost of revenue       29,544   18,630   112,031   65,689

    Gross profit                          34,016   15,567   115,938   54,875

    Operating expenses:
          Selling, general and
           administrative expenses (a)    23,952   12,068    85,798   43,908
          Amortization of intangibles      2,576      436    10,272    1,744
              Income from operations       7,488    3,063    19,868    9,223

    Interest expense                        (937)    (880)   (3,712)  (3,516)
    Interest income                          813    1,230     3,308    4,128
    Other expense, net                       (11)     (10)     (145)    (125)
    Income before income taxes             7,353    3,403    19,319    9,710

    Income taxes                          (2,870)     -      (7,424)     -
    Net income                            $4,483   $3,403   $11,895   $9,710


    Net income per share - basic           $0.08    $0.08     $0.23    $0.24

    Net income per share - diluted         $0.08    $0.08     $0.22    $0.23

    Weighted average shares of common
     stock outstanding used in computing
     basic net income per share           53,958   40,812    51,058   40,045


    Weighted average shares of diluted
     common stock outstanding used in
     computing diluted net income
     per share (b)                        63,954   43,890    53,367   43,068

    (a) Includes stock-based compensation of $888 and $558; and $2,328 and
        $604, for the three months ended and for the year ended December 31,
        2006 and 2005, respectively.

    (b) Weighted average shares for the three months ended December 31, 2006
        include 7,329 common shares related to the Company's 3.5% Senior
        Convertible Notes. Such shares were antidilutive for all other periods
        presented.



                      Allscripts Healthcare Solutions, Inc.
       Reconciliation of Non-GAAP Measure of Adjusted Earnings and Adjusted
                                Earnings Per Share
                 (amounts in thousands, except per-share amounts)
                                   (Unaudited)

                                          Three Months Ended     Year Ended
                                               December 31,     December 31,
                                              2006    2005     2006     2005

    Net income, as reported                  $4,483  $3,403  $11,895   $9,710

    Add back:

    Income taxes                              2,870     -      7,424      -
    Depreciation and amortization             4,285   1,746   16,461    6,528
    Stock-based compensation                    888     558    2,328      604
    Realized losses on marketable
     securities (a)                             -       -        118      -
    A4 Health Systems integration costs         -       -      1,021      -

    Adjusted earnings                        12,526   5,707   39,247   16,842

    Add back:
    Interest expense and debt cost
     amortization                               872    (b)      (b)      (b)
    Adjusted earnings for adjusted diluted
     EPS calculation                        $13,398  $5,707  $39,247  $16,842

    Adjusted earnings per share - basic       $0.23   $0.14    $0.77    $0.42

    Adjusted earnings per share - diluted     $0.21   $0.13    $0.74    $0.39


    Weighted average shares of common stock
     outstanding used in computing basic
     adjusted earnings per share             53,958  40,812   51,058   40,045

    Weighted average shares of common stock
     outstanding used in computing diluted
     adjusted earnings per share (c)         63,954  43,890   53,367   43,068

    (a) -- Realized losses incurred as a result of the early maturity of
           marketable securities due to cash requirements related to the
           acquisition of A4 Health Systems, Inc.
    (b) -- Not applicable due to convertible shares being antidilutive for
           GAAP earnings per share purposes.
    (c) -- Weighted average shares for the three months ended December 31,
           2006 include 7,329 common shares related to the Company's 3.5%
           Senior Convertible Notes. Such shares were antidilutive for all
           other periods presented.



                      Allscripts Healthcare Solutions, Inc.
                      Condensed Consolidated Balance Sheets
                              (amounts in thousands)
                                   (Unaudited)

                                               December 31,       December 31,
    Assets                                           2006               2005

     Current assets:
         Cash and cash equivalents                 $42,461            $60,905
         Marketable securities                      14,553             54,408
         Accounts receivable, net                   55,579             29,746
         Deferred taxes, net                        27,437                -
         Inventories                                 3,247              2,174
         Prepaid expenses and other
          current assets                            10,620              5,811
             Total current assets                  153,897            153,044

     Long-term marketable securities                26,024             30,750
     Fixed assets, net                              14,094              2,753
     Software development costs, net                12,285              6,409
     Intangible assets, net                         78,050              9,151
     Goodwill                                      188,261             13,760
     Other assets                                    4,999              5,097
             Total assets                         $477,610           $220,964


    Liabilities and Stockholders' Equity

     Current liabilities:
         Accounts payable                           $9,294             $8,630
         Accrued liabilities                        26,546             13,791
         Deferred revenue                           35,549             17,306
         Current portion of long-term debt             258                -
             Total current liabilities              71,647             39,727

     Long-term debt                                 85,441             82,500
     Deferred income taxes                           3,915                -
     Other liabilities                                 357                318
             Total liabilities                     161,360            122,545


     Stockholders' equity                          316,250             98,419

             Total liabilities and
              stockholders' equity                $477,610           $220,964
SOURCE  Allscripts
    -0-                             02/13/2007
    /CONTACT:  Dan Michelson, Chief Marketing Officer, +1-312-506-1217,
dan.michelson@allscripts.com , or Todd Stein, Senior Manager-Public Relations,
+1-312-506-1216, todd.stein@allscripts.com , or Bill Davis, Chief Financial
Officer, +1-312-506-1211, bill.davis@allscripts.com , all of Allscripts/
    /Photo:  http://www.newscom.com/cgi-bin/prnh/20061005/ALLSCRIPTSLOGO-b
             AP Archive:  http://photoarchive.ap.org
             PRN Photo Desk, photodesk@prnewswire.com/
    /Web site:  https://www.allscripts.com /
    (MDRX)

CO:  Allscripts
ST:  Illinois
IN:  MTC HEA CPR STW
SU:  ERN CCA

JR-AM
-- CGTU052 --
6741 02/13/2007 16:01 EST http://www.prnewswire.com
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